Bank Salary Hike: Bank employees were demanding salary increase for a long time. Now this demand has been fulfilled. This will benefit approximately 9 lakh employees and 3.8 lakh officers.
Bank Salary Hike: An agreement has been reached between the Indian Banks Association (IBA) and employee unions to increase the salary by 17 percent. This agreement will be considered effective from November 1, 2022 and will remain in force for five years. According to this, due to salary increase, there will be a burden of Rs 12449 crore on all the government banks including SBI.
Salary increase will be 17 percent
According to the agreement, there will be a 17 percent salary increase in all public sector banks. 12449 crores will be spent on this. About 9 lakh employees and 3.8 lakh officers will benefit from the new agreement. Talks were held between IBA and employee unions on 7 December. An MoU was also signed regarding salary increase. The process of new salary increase will be completed in 6 months.
*Update on the 9th Joint Note – AIBOC Secretariat*
We are pleased to inform you that we have officially signed the preliminary Memorandum of Understanding (MoU) for the 9th Joint Note. We have a fund allocation equivalent to 17 percent of the establishment expenses for… pic.twitter.com/vNuZHpOtr4
— All India Bank Officers’ Confederation (AIBOC) (@aiboc_in) December 8, 2023
These are the main issues in this agreement
According to the MOU, the new salary increase will be effective from November 1, 2022. This will remain in force for the next 5 years. For the new pay scale, DA will be merged with the basic pay. This rule will be considered applicable from October 31, 2022. Besides, 3 percent loading will also be applicable, due to which Rs 1795 crore will be spent. There will be different rules for annual salary increase for officers and employees. However, the proposal to increase the pension is yet to be decided. But, it has been agreed to make one time payment to them.
No decision yet on every Saturday holiday
IBA has demanded from the government to keep every Saturday as a holiday. At present, second and fourth Saturdays are bank holidays. Minister of State for Finance Bhagwat Karad had confirmed this in Parliament. But he did not say whether the government was considering this or not. This has not been mentioned even in the MOU. A decision on five day week may be taken later. Before Diwali, the central government had increased the dearness allowance of its employees by four percent, whereas the bank employees had been demanding salary increase since last year.
